Last Month Governor Schwarzenegger signed into law an intersting piece of legislation.  California has aligned itself with the Mortgage Debt Forgiveness Act passed late last year by Congress. However, there is a catch.  The law is only good through the end of 2008. 

What does this mean for you, if you have a California home which is your  principle residence with acquistion debt, you may want to complete your short sale, deed in lieu for even your foreclosure by the end of the year.

If you wait to next year, some California homeowners may be hit with a large tax bill.  

I will go over how this bill effects those with refinanced loans vs those with Non recourse loans in my next blog entry.

John McConnin, Esq.

Attorney and Real Estate Broker

www.UpsideDownRealEstate.com